Question: Please answer the question in the picture in detail. Question 1 (10 points) : Suppose there are two lotteries with no entry fee, but you

Please answer the question in the picture in detail.

Question 1 (10 points) : Suppose there are two lotteries with no entry fee, but you can only enter one. The lotteries are as follows: . A: 90% chance of winning $100 and 10% chance of winning $1000. . B: 60% chance of winning $150 and 40% chance of winning $300. (a) What are the expected values of each lottery? (b) Suppose you have preferences u(V) = V? Which lottery do you prefer? Is this preference risk averse, neutral, or loving? 2 (c) Suppose you have preferences u(V) = V . Which lottery do you prefer? Is this preference risk averse, neutral, or loving

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